a. Puan Mahani, the financial manager of The Bunga Berhad (TBB) is considering an investment in one of three common stocks. Given the information as follows, which stock is better, based on the expected rate of return. (4 marks) Stock Bunga Raya Berhad Probability Return (%) 50% chance 20 50% chance (4) Stock Bunga Orkid Berhad Probability Return (%) 30% chance 30 40% chance 10 30% chance (20) Stock Bunga Mawar Berhad Probability Return (%) 20% chance (30) 40% chance 15 40% chance 10 b. Now let's assume that Puan Mahani would create a portfolio which consists of 30% investment in Stock Bunga Raya Berhad, 30% investment in Stock Bunga Orkid Berhad and 40% investment in Stock Bunga Mawar Berhad. Determine the expected rate of return on this portfolio. (4 Marks) C. Discuss the potential effect on returns of diversifying portfolio to Puan Mahani. (12 marks) (Total: 20 Marks)